IT strategy propels BA profits sky-high

British Airways (BA) has used IT to save more than £134m, helping to transform a struggling business five years ago into the world's most profitable airline.

In an exclusive interview with Computing, chief information officer Paul Coby said IT has cut millions from BA's bottom line, and improved customer service and operating efficiency.

'We've been trying to put IT at the centre of the business,' Coby told Computing. 'Since 9/11, we've used technology to take costs out and provide better services for customers and staff.'

BA chief executive Rod Eddington last week unveiled annual pre-tax profits of £415m, an 80 per cent rise on last year and a huge increase on the £5m reported in 2000.

Eddington highlighted improved customer services, achieved by simplifying the way passengers interact with the airline, and noted progress in several technology-based initiatives.

'The use of self-service check-ins has reached an all-time high, with nearly 600,000 passengers a month using our kiosks at airports,' he said.

Nearly a quarter of the airline's passengers now check in using a self-service kiosk, while one in five uses BA.com to book tickets.

'Usage of e-tickets has grown from 41 per cent to 76 per cent, the highest usage of any network airline outside of the US,' said Eddington.

Two key projects - Customer-Enabled BA, an overhaul of the way the airline interacts with people, and its Employee Self-Service portal - have reduced costs by £100m and £34m.

'Since 2002, we've cut the cost of IT operations from more than £250m to £150m,' said Coby.

As a result, the airline plans to increase its IT budget by up to 50 per cent over the next year, from £66m to at least £93m, and as high as £100m if the investment case justifies it.

'We get a good return on IT, which is why the leadership team is prepared to increase investment,' he said.